For Dell, Consolidation Is Innovation

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Dell announced data storage, combination server, and networking device – Active System 800 on Thursday. Dell hopes that the new device will be fast and flashy and stand still against similar products from Hewlett-Packard, Cisco, I.B.M, and Oracle. However, it’s the market that sorts out the leaders.

You can see that cloud computing is catching up at a rapid pace. It is getting hard to differentiate consolidation and innovation. “Active Infrastructure Family” from Dell is the result of acquisitions made by the company in past few years with respect to networking, storage, and software. Moving into the Cloud Computing era involves rolling the old era of computer businesses.

However, it is not a bad thing. Dell executives said that moving into a business with new companies doesn’t have legacy to continue, which means that it completely focuses on the R&D dollars on new services and products.

However, everyone is heading towards cloud computing. Dell thinks that the product might be useful for small and medium-sized businesses. The consolidated system acts in multiple ways like bigger cloud system and also offers access to cloud computing whenever required.

In the longer run, the company expects to move towards S.M.B. computing to their big cloud and also sell the computing as one single service.

There will be another issue raised here. The major issue is the time- how quickly companies like Dell have to move from one technology to other. Networking, servers, and storage have bought $2 billion of Dell’s USD15.7 billion revenue in the last quarter.

Personal computers are over USD 8 billion and you know that PC business is extremely under serious pressure, as people are looking towards tablets and smartphones.

Marius Haas, an executive at Dell said that the company is moving at a faster pace towards transforming the higher-margin products and also selling the solutions. These products are not like PCs and you might see thin client devices like cloud computing.

Mr. Haas also admitted that the company’s main focus was towards the S.M.B that generally produces large profit margins for the company than the corporation sectors or consumers.

He said that the company proves itself in the present most demanding and large commercial computing environments.

It will be challenging task for Dell and it also involves educating S.M.B. customers. The company is trying to show good enough hardware capability and improve their software services. It seems like an elegant bet.

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